US Senate Fails to Pass CLARITY Act as SEC Introduces New Rules
The US Senate recently failed to pass the Digital Asset Market Clarity (CLARITY) Act, which aimed to provide clarity on how digital assets are regulated in the country. The motion received only 49 votes in favor and 50 against, falling short of the required 60 votes.
Republican Senator Thom Tillis's 'no' vote was not as expected, as he later revealed that he had switched sides at the last minute to allow for a future cloture vote.
The politics and legislative timeline suggest that it is unlikely for CLARITY to pass in this Congress. Congressman Shri Thanedar stated that there are only 20 remaining legislative days before the midterms, making the chances of passing the bill 'very low'.
Seven Democratic senators who voted against the bill expressed their commitment to passing it at some point in the future.
As a result of the failed vote, the US Securities and Exchange Commission (SEC) announced new rules exempting limited trading of tokenized US stocks on decentralized public blockchains. However, this exemption does not apply to 'synthetic' stock tokens that do not provide holders with the same rights as traditional stocks.